Microsoft absorbs aQuantive

Microsoft finished chewing $6 billion worth of aQuantive Monday, and when it was done swallowing created a new business group called the Advertiser and Publisher Solutions group (APS)—and for that kind of cash you better believe big things are expected of it. aQuantive CEO Brian McAndrews will run APS and report directly to Kevin Johnson, president of Platforms and Services.

As head of APS, McAndrews will be in charge of just about all of Microsoft's online advertising efforts. "The APS team will assume responsibility for building and marketing all ad platforms... along with emerging media types such as in-game and mobile ads, and the agency arm Avenue A/Razorfish," Microsoft said in a statement.

APS will work with two other groups in an attempt to subdue Google and Yahoo. The Online Services group, headed by Steve Berkowitz, is charged with drawing more eyeballs to Microsoft's online properties, including MSN and Live. The Search and Advertising Platform, headed by Satya Nadella, is "focused on building innovative technologies in search and designing the advertising platform to support Microsoft’s business and customer goals." Berkowitz and Nadella both report to Johnson.

McAndrews has extensive experience in media and advertising, and it's a good bet Microsoft wants to milk that expertise dry. He told Todd Bishop he's bringing his "full leadership" team from aQuantive, which is another indication Microsoft expects more for its billions than 2,600 employees and a fancy customer list. "The addition of aQuantive's technologies and people to the Microsoft portfolio is a core, strategic investment and step forward in our plans to become one of the top two online advertising platforms in the industry," Johnson said in a statement. Given its distant third-place standing in the online advertising race, Microsoft will need all the help it can get.